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Politics

Budget cuts: Social Services and education take two-thirds of all councils’ money

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Pembrokeshire County Council: Pandemic has forced through change to digital services

How will local government services change?

THE FUNDING pressures on local government over the last decade have been a catalyst for change in local service delivery. Increasing costs and lower revenue for local authorities means some services have reduced or are being run differently.The pandemic put significant new demands on local government, exacerbating existing pressures. The future of local government services is uncertain. How it responds to the challenges will shape those services for years to come.
The shape of local authority services has changed significantly over the last decade.

Overall local authority spending has decreased by around 7% since 2013-14 (in real terms). In contrast, expenditure on social services has increased by over 10%. Spending in most other service areas has been cut, including in education.


Planning and economic development services have been hit particularly hard, as have libraries, culture, heritage, sport and recreation services.

WHERE THE MONEY GOES

Together, social services and education made up over two-thirds of total expenditure on services by the 22 local authorities in 2019-20.


But while social services have been protected from the most severe spending reductions, this won’t be enough to ensure its sustainability for the future


A 2017 report by Wales Public Services 2025 found that spending through local authorities on social care for the over 65s is not keeping pace with the growth in the population of older people. Spending may need to have increased by at least £129 million (23%) between 2015-16 and 2020-21 to get back to the equivalent spend per head in 2009-10.


The ONS estimates that, between 2021 and 2031, the population of Wales will grow by just over 60,000 (1.9%). Within that population growth, there’s a projected increase in the proportion of older people. The population of over 65s is due to increase by around 119,000 (17.5%).


Wales Fiscal Analysis notes that, while future demand for care can’t simply be linked to growth in older populations, projected growth in older people with complex care needs is highly likely to mean increased pressure on care services.


It details that the number of older adults living with severe dementia is expected to double to 53,700 by 2040.
The Inter-Ministerial Group on paying for social care estimated that in a ‘high-cost’ scenario, between 2019-20 and 2022-23, the net costs of social care could increase by almost £400 million.
Wales Fiscal Analysis projects that by 2025-26, social services could account for 55% of all local government spending pressures, with school pressures accounting for a further 21%.

INCREASED RELIANCE ON COUNCIL TAX?

Where local authorities get the money to spend on services has also started to shift. There’s been a reduction in grant funding to local authorities over the period 2013-14 to 2019-20, some of which has been mitigated by local taxes. Grant funding still makes up most local authority income.


The amount to be collected from council taxpayers (excluding council tax benefit/reduction scheme funding) was up by almost 30% over the same period.


The overall increase reflects annual increases in council tax paid by residents over the period. Average Band D council tax (excluding the police element) increasED in real terms by £186.


However, local authorities have consistently warned that raising council tax is not enough to fill future funding gaps

Following the UK Budget 2021, Wales Fiscal Analysis notes that “the UK government’s medium-term spending plans make for a more austere outlook for the Welsh budget and Welsh public services” and outlines the possibility of a return to austerity for parts of the Welsh budget.


The financial impact of the pandemic on local government is likely to be felt for many years.
Audit Wales notes that, even in local authorities generating a budget surplus in 2018-19, some had significant overspends in demand-led services like social services. It suggests those pressures are likely to intensify because of the pandemic.

TRANSFORMINGPUBLIC SERVICES:

Local government has embarked on a journey to transform how it delivers services.
Local authorities are thinking differently about improving services for users while reducing the cost of running them.


An example of this is one-stop-shops or ‘hubs’. These hubs host multiple council services under one roof, such as libraries, money advice and adult learning services.

One of the most significant aspects of the transformation programme is to make better use of technology and digital tools.


The Digital Strategy for Wales, launched in March 2021, sets out a national vision for digital transformation. The Strategy seeks a cultural shift in how public bodies “deliver and modernise services” designed around user needs.
Over the past year, local authority resources have been diverted from some of this transformational work. Anticipated financial savings are now uncertain.
The WLGA recently suggested there’s doubt about when, and indeed if, some of those savings will now happen.

MIND THE GAP

Corporate Joint Committees (CJCs) are bodies designed to enable greater regional working and collaboration in areas like education and transport.


However, questions remain about how these new bodies will operate.

Responses to a recent consultation on CJCs by the previous Welsh Government show there’s still uncertainty about how they’ll function and their associated costs and benefits.


Despite the recent increase in the local government settlement for next year and the substantial funding support in response to the pandemic, significant challenges remain.

Wales Fiscal Analysis suggests that to meet cost pressures over the next few years, spending on local services needs to increase, on average, by 3.4% a year (in cash terms) between 2020-21 and 2025-26.


The WLGA recently reported that core pressures, the financial gap in money coming in, and what’s needed to pay for services could amount to £822 million by 2023-24.

Leaning on local taxation, such as council tax, to support critical services like social care and education won’t stem the demand for and cost of providing those services.

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Politics

Senedd backs review over watchdog ‘stitch up’

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A CALL by the Conservatives for an inquiry into the political impartiality of Wales’ public services watchdog has been backed by Senedd Members.

Sam Rowlands led a debate after the head of investigations at the Public Services Ombudsman for Wales stepped down over anti-Conservative comments online.

Mr Rowlands said the ombudsman’s office, which deals with complaints about councillors and public services, must be impartial and unbiased.

But he warned: “Unfortunately, we now know that this simply has not been the case.

“After revelations that the head of investigations had been, over a long period of time, making torrents of politically motivated, hostile, aggressive comments on social media, it’s clear that the ombudsman has a real problem.”

Mr Rowlands said non-Conservative politicians were also in the firing line with independents in Bridgend and Monmouthshire raising concerns about unfair treatment.

The Conservative MS for North Wales criticised the initial decision to appoint James Goudie KC, a barrister and former Labour council leader, to lead an investigation.

He told the chamber: “It’s almost beyond belief, but then you do remember we are in Labour-run Wales, where this behaviour is just par for the course.

“I am pleased that eventually the individual in question has been removed from this role.”

The former Conwy council leader urged the ombudsman, Michelle Morris, to reopen every investigation involving the former head of investigations.

Mr Rowlands made the case for a full and thorough investigation by a Senedd committee to understand the “exact extent of how deep the rot is” and restore credibility.

Peredur Owen Griffiths, who chairs the finance committee, said it is essential that the ombudsman investigates independently of political interference.

The Plaid Cymru MS, who represents South Wales East, urged caution in the Senedd considering operational matters within the ombudsman’s office

He said: “It is not our role to monitor the day-to-day running of the office, nor should we be challenging the ombudsman’s decision, as that would undermine the integrity of the office and investigations process.

“However, the ombudsman is ultimately accountable to the Senedd, and it is right for us to take action when serious concerns arise.”

Mike Hedges, a Labour backbencher, told the chamber the ombudsman provides an excellent service to the people of Wales in dealing with complaints about public services.

However, he argued the ombudsman is not suited to dealing with complaints about politicians as he called for the creation of an ethical standards commissioner.

The Swansea East MS warned: “Many complaints are politically motivated, and the number increases as you approach local elections.

“And they’re often by people standing against sitting councillors who then make complaint after complaint about them to try and muddy the water.”

Gareth Davies, the Conservative MS for Vale of Clwyd, said trust in the public services ombudsman has collapsed as he argued the watchdog should be replaced.

Llyr Gruffydd, for Plaid Cymru, told MSs that recent revelations around the ombudsman’s office have been deeply regrettable and damaging.

Mr Gruffydd, who represents North Wales, said upholding the highest possible standards is more important than ever in an age of declining trust.

He welcomed the ombudsman’s decision to rethink the appointment of Mr Goudie after the full extent of his Labour links came to light.

Mr Gruffydd criticised calls to wind down the public services ombudsman, saying: “I don’t think the best course of action is to rashly throw the baby out with the bath water.”

He paid tribute to the ombudsman’s hard-working staff “who have been dragged into this unfortunate episode” which has tarnished the office’s reputation.

Lesley Griffiths, responding for the Welsh Government, shared concerns about recent events but stressed that ministers would not advise the ombudsman on how she should respond.

Ms Griffiths, the newly appointed culture and social justice secretary, said public servants must behave with complete political impartiality in their responsibilities.

“This includes not doing anything in their lives outside of work that might cause that impartiality to be called into question,” she said.

The Conservative motion was agreed without objection, doing away with the need for a vote following the debate on April 17.

The Welsh Government had tabled a “delete-all” amendment and it is thought that Labour MSs allowed the Tory motion to pass in error.

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Climate

Clean energy projects ‘harming’ rural Wales, warns Conservative MS

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THE BUILDING of renewable energy projects should not be at the expense of Wales’ rural communities, a Conservative MS has warned.

James Evans, who represents Brecon and Radnorshire, said large-scale wind farms and pylons threaten Wales’ breathtaking landscapes and tourism industry.

Despite his concerns, Mr Evans said he recognised that green energy is crucial to a sustainable future.

He said: “We can’t ignore the potential harm that these projects can inflict on the very communities they’re supposed to help.

“Imagine this: you wake up to the consistent sound of a hum of a turbine blade. Some residents have described this sound as similar to a plane consistently being overhead.

“This isn’t science fiction – it is the reality for many living near wind farms.”

Warning that renewable projects can drastically change the countryside’s character, Mr Evans raised concerns about “shadow flicker” from the colossal structures.

Leading a short debate in the Senedd on April 17, the Tory highlighted a study that found a statistically significant negative impact on property values near onshore wind farms.

Mr Evans said the most concerning aspect is a feeling of voicelessness among residents “who are battling against big corporations like David and Goliath”.

He told the chamber:” Many communities fear that they have little say in the decision-making process surrounding windfarm development.

“Consultations, if they happen at all, can often feel like a mere formality. “

Mr Evans said Planning Policy Wales clearly states cables should be undergrounded but developers often say it is not financially viable.

He told MSs: “All these developments should be designed, in the first instance, to comply with Planning Policy Wales.

“They cannot use costs as an excuse to circumvent the planning policies here in Wales, and I think Welsh ministers need to be a lot stronger in following their own guidance.”

Mr Evans questioned the tangible benefits from developments for rural Wales, saying these are dwarfed by big returns for shareholders.

He argued responsible development is key, calling for noise emission limits, turbines to be placed further from homes and more robust community consultation.

Cefin Campbell, for Plaid Cymru, said his party has no objection to onshore renewables but Wales must question the size and scale of wind farm proposals.

He raised concerns about a “green rush” with developers proposing to build pylons criss-crossing Powys, Ceredigion and Carmarthenshire.

Russell George, the Conservative MS for Montgomeryshire, similarly argued against the “over-proliferation” of wind farms.

His Tory colleague Samuel Kurtz raised the potential for floating offshore wind in the Cetlic sea, saying it is vital to minimise the disruption caused by associated onshore infrastructure.

Janet Finch-Saunders, a fellow Conservative, who represents Aberconwy, also urged ministers to explore undergrounding as an alternative to overhead lines.

Jeremy Miles told the chamber the Welsh Government wants to see a fair transition, which strengthens the economy, creates jobs and supports social change.

Wales’ new economy secretary emphasised that energy is crucial to the economy, with a target of 100% of electricity coming from renewable sources by 2035.

Mr Miles reassured MSs that the planning process is rigorous, robust, transparent and, critically, affords opportunities for community engagement.

He said: “Communities will be heard and decisions will be made balancing the climate emergency and the needs of communities for the long term.”

Stressing that rural Wales is at the forefront of ministers’ thinking, Mr Miles announced plans to convene an independent advisory group on the future of Wales’ electricity grid.

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Politics

20mph policy ‘should be targeted at schools, hospitals and nurseries’

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WALES’ controversial 20mph policy should be targeted at schools, hospitals and nurseries, the new transport secretary has suggested.

Ken Skates, who was appointed to the cabinet last month, told the Senedd there is widespread support for 20mph in areas where children and older people are at risk.

He stressed that ministers want to undertake a “national listening programme” on 20mph, engaging with businesses, communities and citizens across the country.

Mr Skates said: “There is, I believe, a growing consensus in this debate that we can at least build on that 20mph is right around our schools, hospitals, nurseries.”

The transport secretary, who succeeded Lee Waters in Vaughan Gething’s new look Welsh Government, told the chamber ministers must make sure 20mph zones are truly targeted.

He vowed: “Changes will be done with and for the communities we all serve – with the voice of citizens right at the heart of all we do.”

Mr Skates also signalled a potential change in direction on new roads, emphasising: “We will continue to build new roads.

“Whether that’s to address localised congestion, pinch points and poor air quality, to improve safety, or, for that matter, to adapt our road network to the kind of extreme weather that we’re now seeing here in Wales with alarming regularity – we will build new roads.”

Responding to a Conservative debate on Wales’ “not fit for purpose” policies, Mr Skates pledged to change the tone of debate on transport.

Natasha Asghar, the Tory shadow transport secretary, said 20mph has proved hugely unpopular, with a record near-half a million people signing a petition to rescind the policy.

Ms Asghar questioned Welsh Government claims that the policy will save the NHS £92m, saying there is very limited evidence as she called for a detailed breakdown.

Delyth Jewell, Plaid Cymru’s shadow transport secretary, said major change is required as she warned that transport is all too often expensive and difficult to access.

The party’s deputy leader told MSs the price of bus tickets has increased at the same time services are being cut, leaving communities isolated.

Ms Jewell warned that Wales lost out on billions through HS2 as she urged the Welsh Government to challenge UK ministers’ decision through the courts.

She said: “We have paid towards impoverishing ourselves. Neither Sunak nor Starmer sees the need to right that wrong. Westminster will always prioritise Westminster, never Wales.”

Highlighting the climate emergency, John Griffiths stressed the importance of a modal shift from road use to public transport and active travel.

The Labour backbencher said five new railway stations in south east Wales will make a major contribution to easing congestion on the M4.

However, the Newport East MS emphasised that rail infrastructure is not devolved and Wales has only received a “paltry share of investment compared to the rest of the UK”.

Peter Fox, the Conservative MS for Monmouth, reiterated calls for a Chepstow bypass, saying the town is regularly gridlocked with an almost two-mile traffic queue.

He told the chamber: “We need to see the shelved road schemes back on the table to boost the economy and get our congested roads moving once again.”

Labour backbencher Carolyn Thomas argued Wales needs to prioritise investing in existing roads which are in a “dire” condition due to “ever-dwindling” budgets.

The North Wales MS said one council ran out of cash to patch potholes last month.

The Conservative motion also raised concerns about a north-south divide, with £50m allocated to the north Wales metro and more than £1bn to the south Wales metro.

But Mr Skates argued it is not comparing like with like because Wales has powers over lines in the south but rail infrastructure in the north remains the UK Government’s responsibility.

The Tory motion was defeated, 15-36, with Plaid Cymru’s amendment also falling, 10-41, before the motion as amended by ministers was agreed, 27-15 with nine abstentions.

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